Online Trading and DEMAT Account in India-Some Issues
|
|
- Constance Jacobs
- 8 years ago
- Views:
Transcription
1 83 Online Trading and DEMAT Account in India-Some Issues Dr. Ramesh Onkareppa Olekar, Associate Professor & Coordinator, PG Department of Commerce, Vijayanagar Sri Krishnadevaray University, Post Graduate Centre Nandihalli, Sandur Chanabasappa Y Talawar, P G Department of Studies & Research in Commerce, Karnatak University P G Center, Kodibag, Karwar ABSTRACT The term "market" can have many different meanings. One usage of the term denotes the primary market and the secondary market. These two markets distinguish between the market where securities are created and the market where they are traded among investors. Their function is the key in understanding how securities are traded. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. Secondary market is where most trading occurs, the secondary market is the one in which securities are traded after having been initially offered in the primary market. It is basically a market in which an investor purchases an asset from another investor, rather than an issuing corporation. This includes the NYSE, NASDAQ and all major exchanges around the world. The defining characteristic of the secondary market is that investor s trade among themselves. For example, if you go to buy Microsoft stock, you are dealing only with another investor who owns shares in Microsoft. Microsoft (the company) is in no way involved with the transaction. However there was an improvement in the mechanism of trading whereby it was seen that there was a shift from the traditional method of physical trading to the updated version of online trading. Keywords DEMAT, ONLINE-TRADING, SECONDARY MARKET, PRIMARY MARKET, SWAPS AND OPTIONS INTRODUCTION Online brokerage has grown substantially since the introduction of Internet and now account for 40%-50% of retail trade. This change has come in because individual investors want to increase control over their finances and do not want someone else to manage the money. Online trading has become very popular in last couple of years because of convenience of ease and use. Numerous companies have gone on-line to meet their customer s demands enabling them to trade when they want and how they want to. Online trade, which now accounts for 50%- 60% of all retail trade, is forecasted to increase to 70% by At present online brokers hold $574billion in assets but this figure is expected to grow to $4 trillion by end of The market has become saturated and very competitive. As the number of players increase, it becomes very difficult to differentiate. The volatility in US equity, market in 1999 and September 11 World Trade Center attack has hurt the online brokerage trading volumes. Established E-brokerage firms have created bearer to entry that makes it difficult for new player to enter into the market. Dematerialization the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with his (DP) Depository Party. Only those certificates that are already registered in your name and are in the list of securities are admitted for Dematerialization at NSDL/ CDSL. Demat shares are supposed to obviate all the problems of physical trading. The biggest attraction of trading in Demat shares is that the shares an investor buys comes with a clean title and immediately after the settlement on the relevant stock exchange. Buying shares in the Demat form always guarantees the investor a good title as soon as the settlement is over and hence it is a preferred mode of trading today and will be so in the future also. STATEMENT OF PROBLEM Online trading and Demat are the two emerging concepts in stock market. It involves personal factors, technical factors, business factors and economic factors. The interplay of these factors on stock market requires a deep study about the pattern process and procedures and performance. This study is intended to identify the various concepts about Demat and the online trading and its way of functioning. NEED FOR THE STUDY Physical trading has been given up by many stock exchange around the world and till India is catching up. Transparency has become an important issue with the regular series of scams over the years. At this junction, Indian investors are able to avail the facilities of Depository participants, Depositories, along with brokerage.
2 84 So how far this system is working in India and the investors experience with these new system of trading. OBJECTIVES OF THE STUDY To study the awareness level of various concepts of Demat & online trading. To identify the benefits of Demat & online trading. To study percentage of savings of online trading. To identify the market leaders in this segment METHODOLOGY Throughout the study an attempt has been made to arrive at the conclusions with help of economic reasoning, experience derived from secondary markets from the lessons of the economic history. The study is explorative in nature as it aims in identifying the growth & benefits of DEMAT and on-line trading. The assets, which the corporation has inherited, have deep roots and justify full discussion in its historical perspective. SOURCES OF DATA Secondary data: The secondary data collected from different websites, journals, company reports and the available literature on the subject. SCOPE OF THE STUDY The study encompasses only the major Secondary market that have a substantial share in the share market. The scope of the study is limited to the performance of the industry for the limited period. Limitations of the study The information provided by the managers may not be the actual figures; it may be a virtual data in the sense conclusions based on the real data vary from the virtual data. The study is conducted in the short period of time, and hence the results vary from time to time. The study covers only a particular geographical region, and hence the conclusions cannot be considered as a whole outcome of the industry. need to facilitate inflow of funds in the capital market. The trading system will enable all categories of investors, resident and non-resident Indian, to trade online. Online brokerage in India is still in its early days. Though the trade through online broking is very miniscule compare to total trading, the signs are that it will grow to 30%-35% in next few years. EFFECT ON OFF-LINE BUSINESS With the emergence of e-broking, which offers many benefits like, level playing filled to all investors, comfort of the house, simplicity, low brokerage and value added services it could be possible for some of the offline trade to shift to online trade. The proportion of online broking business compare to off line broking is miniscule about less than 1%. The offline player would not be affected unless the figure reaches a minimum of 8-10%. Online trade has not started to eat the volumes of, off line business till now. But at the same time it has created new set of clients for e.g., NRI s who were not very active in the market due to lack of transparency and information, have moved to use this facility. Housewives are another new category. Net savvy student s and retired persons are the next expected category. Depository services-beginning of the era of stocks at click Today it is a practical reality that one can arrange delivery of securities (shares) sold anytime, anywhere to anyone by a click of the mouse and it is possible to trade in securities and settlement of the accounts from the convenience of a sitting room or via a laptop. The depository is responsible to deliver and receive securities trade at the stock exchange, which are the business partners of the depository. It does not deal with financial aspect of the settlement of the trade. Dematerialization of securities (shares) was the commencement of the era of stocks. The beginning was made in 1996, with legislation of the depository act 1996 and SEBI regulations REASONS FOR ONLINE TRADING IN INDIA Each investor has one or other reasons to go for online trading instead of offline trading. They are as follows: They are independent. They fell they have control over their account, can make their own decisions and don t have to give reasons for their actions. INDIAN E-BROKING SCENARIO They have a reason to participate in the stock market and learn about it. The Indian stock broking business has gone through a sea They find it interesting, cheap, easy, and fast and of changes. From that of a business dominated by few convenience. individual players to institutional members, as did trading A lot of information is online so they can keep up-to-date open outcry and hidden deeds to screen best and with what is happening in the trading world. transparency. India enters the cyber-trading era to equal They are sure and overconfident. the current market trends taking into consideration the
3 85 They have access to numerous tools to invest and can create their own portfolio. They feel that trading through net can hide from others. Reasons for the emergence of online trading in India The reasons for providing online trading facility to investors by the Indian companies are various. They are as follows: Online trading has a very good future in India as it is not exploited properly so far. Consistent increase in the number of users of interest. Consistent increase in the number of personal computer users. Part of diversification. Less investment in technology and other areas compared to the returns. More awareness in investors about the stock market. RECENT DEVELOPMENTS The bumpy Bull Run in the stock markets has triggered a slowdown in the opening of new account by the depository participants (DPs). Faced with the sudden dip in the number of new account being opened the DPs are devising ways to attracts customers. On offer is Interactive Voice Response (IVR) for the latest update on Demat accounts and services through the Internet. Most of these Demat accounts are now dormant. Several DPs are planning to launch Interactive Voice Response (IVR) units and Demat services on the Net, Through these IVR units, investor will be able to know the current value of their portfolio, current holdings, transaction list, etc. Some DPs are providing Demat services on the Net to enable customer to access their account and get the holding and transaction statement on a daily basis. For eg: HDFC Bank. With Online trading an investor can: Enter orders through internet. Review your account balances and transaction activity. Obtain stock quotes in real time. Access company profiles and research. Receive the most competitive and current commission schedule. Direct Floor Access-Submit trades directly to the pit in real time. Institutional Quality Order Entry. Market-to-Market Dynamic Account Updates. Reduced Commissions - Up to 80% discounted commission rates. RESULTS AND DISCUSSION Table 1: Showing usage of Online trading system continent wise. Continent N.America 25% Asia Pacific 21% W.Europe 44% Rest of the world 10% Percentage This table shows By observing the above table we can understand that 90% usage of online trading is made by the three continents that is W.Europe 44%, N.America 25%, Asia Pacific 21% and rest 10% is made by the rest of the word. Table 2: Showing ranking of major benefits of online trading system Benefit Single bank multi-bank Improved Information Transparency 4 1 Time Saving 1 2 Cost Saving 6 3 Better Security/Audit 2 4 Straight through Processing 3 5 Quality of Research /Analytics 5 6 This table indicate By observing the above table we can understand that by using the online trading the bank can get so many benefits like Improved Information Transparency, Time Saving, Cost Saving, Better Security/Audit, Straight through Processing and Quality of Research /Analytics. These benefits are changes when observation made on single bank and multi-bank.
4 86 Table 3: Showing products that are traded online Product Percentage Swaps and options 8% Bonds 13% Commercial paper 12% Shares 65% This table shows by observing the above table we can understand that what are the products are transacted through on-line trading and at what % the transaction will be made. Out of 100% 65% of transaction is made for shares and remaining 35% of transaction will be made as follows. Bond 13%, commercial paper 12% and remains 10% for swaps and options. Central Depository Services (CDS) The other depository is Central Depository Services (CDS). It is still in the process of linking with the stock exchanges. It has registered around 20 DPs and has signed up with 40 companies. It had received a certificate of commencement of business from SEBI on February 8, These depositories have appointed different Depository Participants (DP) for them. An investor can open an account with any of the Depositories Participant (DP). But transfers arising out of trades on the stock exchanges can take place only amongst account-holders with NSDL's DPs. This is because only NSDL is linked to the stock exchanges (nine of them including the main ones-nse and BSE). Once connected to both the depositories the stock exchanges have also to ensure that inter-depository transfers take place smoothly. It also involves the two depositories connecting with each other. Holds funds in accounts Bank Transfers funds between accounts Transfers without handling money Safekeeping of money The NSDL and CDS have signed an agreement for interdepository connectivity. Dematerialized Trading Dematerialization or "Demat" is a process whereby the investors securities like shares, debentures etc, are converted into electronic data and stored in computers by a Depository. Securities registered in the investors name are surrendered to depository participant (DP) and these are sent to the respective companies who will cancel them after "Dematerialization" and credit investor s depository account with the DP. The securities on Dematerialization appear as balances in investors depository account. These balances are transferable like physical shares. If at a later date, the investor wishes to have these Demat" securities converted back into paper certificates, the Depository helps them to do this. Depository functions like a securities bank, where the Dematerialized physical securities are traded and held in custody. This facilitates faster, risk free and low cost settlement. Depository is much like a bank and performs many activities that are similar to a bank. Following table compares the two: Holds securities in account Depository Transfers securities between accounts Transfers without handling securities Safekeeping of securities Benefits Of Demat Transacting the depository way has several advantages over the traditional system of transacting using share certificates. Some of the benefits are: Trading in Demat segment completely eliminates the risk of bad deliveries, which in turn eliminates all cost and wastage of time Associated with follow up for rectification. This reduction in risk associated with bad delivery has lead to reduction in brokerage to the extent of 0.5% by quite a few brokerage firms. In case of transfer of electronic shares, you save 0.5% in stamp duty. The investor can also avoid the cost of courier/ notarization/ the need for further follow-up with your broker for shares returned for company objection In case the certificates are lost in transit or when the share certificates become mutilated or misplaced, to obtain duplicate certificates, the investor may have to spend at least Rs 500 for indemnity bond, newspaper advertisement etc, which can be completely eliminated in the Demat form The investor can also receive his/her bonuses and rights into their depository account as a direct credit, thus eliminating risk of loss in transit. The investor can also expect a lower interest charge for loans taken against Demat shares as compared to the interest for loan against physical shares. This could result in a saving of about 0.25% to 1.5%. Some banks have already announced this. The exclusive demat segments follow rolling settlement cycle of T+3 i.e. the settlement of trades
5 87 will be on the 3 rd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor. Reduction in handling of huge volumes of paper Periodic status reports to investors on their holdings and transactions, leading to better controls. RBI has increased the limit of loans against Dematerialized securities as collateral to Rs 2mn per borrower as against Rs1mn per borrower in case of loans against physical securities. RBI has also reduced the minimum margin to 25% for loans against Dematerialized securities as against 50% for loans against physical securities. Demat functions not only in capital market, it also does in money market. Selling and Buying Of Shares Charges Selling dematerialized shares in stock exchanges is similar to the procedure for selling physical shares. Instead of delivering physical shares to the broker, the investor instruct their DP to debit their account with the number of shares sold by them and credit their broker's clearing account The investor can sell shares in any of the stock exchanges linked to a depository through a broker of their choice. On the pay-in day, the broker gives instruction to his DP for delivery of the shares to clearing corporation of the relevant stock exchange. The broker receives payment from the clearing corporation. The investor receives payment from their broker for the sale in the same manner they would receive payment for a sale in the physical mode. The procedure for buying dematerialized shares in stock exchanges is similar to the procedure for buying physical shares. When the investor wants to purchase shares in electronic form, they have to instruct their broker to purchase the dematerialized shares from the stock exchanges linked to a depository. NSDL does not charge the investor directly but charges its DPs, who are free to charge their clients. NSDL charges its DPs under the following heads: Transaction Fees: Market Trade - sale - nil; purchase - 5 basis points (i.e. 0.05% of the value of net receipts to a clearing members account) Off Market Trade: sale - nil; purchase - 10 basis points (i.e. 0.1% of value of securities) Custody Fees: 3.5 basis points p.a.(i.e % p.a. of average value of securities) Dematerialization: Rs. 10/- per certificate One time payment scheme: NSDL has announced a new scheme under which, if a company makes a one-time payment of 5 basis points (0.05%) of the average market capitalization during the preceding 26 weeks, then NSDL will not charge any custody fees to the DPs for shares of that company. Future issues by such companies would require a payment of 5 basis points on the new share capital created. The valuation for new shares will be done at the issue price. Companies would not be required to pay any additional amount, if they make a bonus issue Demat Shares: Are They 100% Safe When an investor buys physical shares from the stock market, they can never be certain of the validity of the title of shares. There were many reasons- the sellers' signature did not match, or the certificates were fake, forged or stolen, and so on. Demat shares are supposed to obviate these problems. Buying shares in the demat form always guarantees the investor a good title as soon as the settlement is over. The biggest attraction of trading in demat shares is that the shares an investor buys comes with a clean title and immediately after the settlement on the relevant stock exchange. Rule 100 of market regulator SEBI determines whether the shares delivered in a settlement, are good or not. Under rule 100, the shares that have been transferred any number of times can still be withdrawn by the company, if a transfer is found to be invalid for any reason. FINDINGS After the introduction of dematerialization the stock market has become more transparent and it attracts more investors day by day. If the volume increases continuously, DPs will be in a position to decrease the charges for opening and maintenance of demat a/c. It is observed that banks normally levy a lower service charge compared to other depository participants. There are some other banks which charges less services charges for demat services than other securities companies. When the numbers of users are more on line, the speed of the transaction is affected. Since the rolling settlement is one day, people who are speculating without having full amount of money or shares with their DP, tend to face higher degree of risk. Some securities have not yet started with the Interactive Voice Response (IVR) units and demat on net. Even though online trading provides privacy to the clients, trends available from the trading room will not help most of the online traders. Investors dealing online must possess good knowledge for analyzing the information passed on by the companies through net.
6 88 Online service depends highly on technology. CONCLUSION Notwithstanding many problems, Indian stock market has emerged as a significant financial intermediary, assisting efficient resource allocation, providing strong support to Indian economy and help investors to realize the benefits of stock market investing. The growing importance of the Indian stock market place may be noted in terms of increased mobilization of funds and growing number of investors account. Indian stock market industry has remained centered around a limited product range. This has happened due to the tendency to avoid risk, inability to understand future market development and changes in investor preference. The absence of product diversification and a confused market situation has been made more by the absence of an innovative marketing network. Online is considered as one of the innovative network. The product range offered by stock broking firms needs to be redesigned to cater the changes in the short term, medium term and long term savings and investment markets. Management is considered to be a key for the operational efficiency of any business venture. This factor becomes even more crucial for service ventures such as stock broking business venture. Stock market industry must undertake a well-designed and comprehensive program of investor education especially aimed at investors in rural and semi-urban areas. However this has been mostly neglected in India. In India most of the broking business comes from the small investors and efforts are concentrated on serving them efficiently, and this would help them in being a good intermediary for providing various financial services due to it s reach to the last mile. SEBI has been playing a significant role in the regulation of stock market. SEBI s steps like dematerializing, and trading through net etc. has increased the transparency of the trading than before. In the global market place no industry can afford to be struck by inertia. But it is management which is crucial to the success of any business operation. REFERENCES [1] Buckley Adrian, Multinational Finance, (15 April 2008), PHI, New Delhi [2] Alan C. Shapiro Multinational Finance Management [3] M. Karunakar & S. Saravanan (May 2008 ) Impact of Micro-Finance, Southern Economists Vol. 46, page No [4] Mrs. Archana Sinha (July 2008) Micro Finance Vol. 35 No. 7, page No. 33 (Courtesy: Decan chronicle). [5] N. Mukudan & M. Hilaria Sundari, Emerging Dimensions in Online trading ; Micro Finance in India, Dominant publishers and distributors New Delhi [6] Levy International Finance, (2003) TMH New Delhi. [7] IAN Giddy, Global Finance Market,(2007) AITBS, New Delhi
How to Start Trading in Shares & Select the Best Demat and Trading Account
How to Start Trading in Shares & Select the Best Demat and Trading Account Today we will understand the steps that you need to take before starting to trade in the share market. Basically you require a
More informationHow To Buy And Sell On The Stock Exchange
VI. SETTLEMENT OF SECURITIES IN DEMAT MODE 1. What is settlement? Investors buy / sale securities on stock exchange platform by placing buy / sale orders through their stock brokers with whom they registered
More informationE GOLD: THE NEW INCARNATION OF GOLD
E GOLD: THE NEW INCARNATION OF GOLD Introduction E-GOLD is the new incarnation of gold, innovated by National Spot Exchange (NSEL), which enables investors to invest their funds into Gold in smaller denomination
More informationCURRENCY FUTURES IN INDIA WITH SPECIAL REFERENCE TO CURRENCY FUTURES TRADED AT NSE
CURRENCY FUTURES IN INDIA WITH SPECIAL REFERENCE TO CURRENCY FUTURES TRADED AT NSE Vinayak R. Gramopadhye Assistant professor, ASM s Institute of International Business and Research, Pimpri, Pune-18 Abstract
More informationa) Elimination of all risks associated with physical certificates: There is no risk of loss, mutilation or theft of certificates.
Central Depository Services (India) Limited (CDSL), is a depository managed by professionals, has been promoted by The Bombay Stock Exchange (BSE) Limited along with a cross section of several leading
More informationFAQ Depository participant (DP) Facilities being offered by PNB s DP Why demat account with PNB? How to open an account with a DP?
FAQ Depository participant (DP) A Depository Participant (DP) is an agent appointed by the Depository i.e. National Securities Depository Ltd (NSDL) and/or Central Depository Services Ltd (CDSL) and is
More informationII. DEMAT ACCOUNT OPENING
II. DEMAT ACCOUNT OPENING 1. What are the benefits of opening a demat account for investors? A demat account has become a necessity for all categories of investors for the following: a. SEBI has made it
More informationExchange Traded Funds - Advantages and Disadvantages
Universal Banking Solution System Integration Consulting Business Process Outsourcing Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. Until the development
More informationPresentation on Nepal Stock Market and Dematerialization PRESENTED BY: NISHA TIMILSINA
Presentation on Nepal Stock Market and Dematerialization PRESENTED BY: NISHA TIMILSINA What is Stock Market? Most Public Limited Companies have investors who hold their investments in the form of Share
More informationPRACTICE QUESTIONS SECURITIES MARKET (BASIC) MODULE. 1) The following are participants in the securities markets. (1 mark)
PRACTICE QUESTIONS SECURITIES MARKET (BASIC) MODULE 1) The following are participants in the securities markets. (a) Underwriters (b) Debenture Trustees (c) Venture Capital Funds (d) All of the above 2)
More informationPRACTICE QUESTIONS CAPITAL MARKET (DEALERS) MODULE. 1. Appeal against the orders Securities and Exchange Board of India can be made to
PRACTICE QUESTIONS CAPITAL MARKET (DEALERS) MODULE 1. Appeal against the orders Securities and Exchange Board of India can be made to. Central Government Securities Appellate Tribunal Registrar of Companies
More informationWhat are Shares? What is a Stock Exchange? Why do Companies go Public? IPO explained.
What are Shares? Shares, as the name says, are shares in a limited company. Each shareholder is a partial owner of the company in which they have bought shares and investors can buy and sell their shares
More informationIntroduction to Government Bond, Corporate Bond and Money Markets
Introduction to Government Bond, Corporate Bond and Money Markets Fixed income market in India can be categorized into five segments, Money Market, Government Bond Market, Corporate Bond Market, Interest
More informationDepository Services. 1. No danger of loss of share certificates since the shares are credited to your account.
Depository Services Introduction : We have pleasure in informing you that the scripts of your company are amongst the first ten securities which have been notified by SEBI to be compulsorily traded in
More informationChapter 5 Introducing and Understanding Transaction cycle
Chapter 5 Introducing and Understanding Transaction cycle Learning Objectives: After reading this chapter, you should be able: 1. To identify the parties involved in the process of clearing and settlement.
More informationINDIAN STOCK MARKET - THE PRESENT SCENARIO
CHAPTER III INDIAN STOCK MARKET - THE PRESENT SCENARIO 3.1 Introduction Capital market is the centre or arrangement that provides facilities for buying and selling of long-term financial claims. It is
More informationDETERMINATION OF INTEREST RATE ARBITRAGE ACROSS MARKETS IN INDIA
SRJIS/Sameer Anvekar & Prakash Salvi. (170179) DETERMINATION OF INTEREST RATE ARBITRAGE ACROSS MARKETS IN INDIA Samir Anvekar Research Student, Department of Economics, University of Mumbai. Prakash Salvi.
More informationTABLE OF CONTENTS. 1. Introduction... 1. 2. Role of NSDL in settlement process... 2
TABLE OF CONTENTS 1. Introduction... 1 2. Role of NSDL in settlement process... 2 3. Opening a Clearing Account:... 2 q Procedure for opening a clearing account for the first time... 2 q Procedure for
More informationUnderstanding the Rolling Settlement
Chapter 6 Understanding the Rolling Settlement Learning Objectives: After reading this chapter, you should be able: 1. To identify the various segments into which the market is divided. 2. To recognize
More informationFAQs: Rajiv Gandhi Equity Saving Scheme (RGESS), 23 NOV 2012
FAQs: Rajiv Gandhi Equity Saving Scheme (RGESS), 23 NOV 2012 1. What is Rajiv Gandhi Equity saving Scheme 2012 (RGESS) and its objective? A tax-saving scheme launched by the Government of India with the
More informationTo be Franked for Rs. 500/- POWER OF ATTORNEY
To be Franked for Rs. 500/- POWER OF ATTORNEY x KNOW ALL BY THESE PRESENTS THAT I/We x x x an Individual (Resident Indian(s)/Non resident Indian(s)/Person (s) of Indian Origin) HUF/Trust/ Partnership/Club/Company/OCB/AOP/Bank/Sole-
More informationPROBLEMS AND PROSPECTS OF ONLINE SHARE TRADING PRACTICES IN INDIA
PROBLEMS AND PROSPECTS OF ONLINE SHARE TRADING PRACTICES IN INDIA DR.A. ABDHUL RAHIM ASSOCIATE PROFESSOR, MUSLIM ARTS COLLEGE, THIRUVITHANCODE The business of stock exchanges was originallydone in mere
More informationM. Com (IIIrd Sem) Examination, 2013 Paper Code: AS-2378. * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV)
Model Answer/suggested solution: Stock Market Operation M. Com (IIIrd Sem) Examination, 2013 Paper Code: AS-2378 * (Prepared by: Harish Khandelwal, Assistant Professor, Department of Commerce, GGV) Note:
More informationOperation of Stock Exchange
Topics to be Discussed Stock Market Transactions Types of Brokers Role of Specialist Types of Trading Orders Trading and Settlement Dates Stock Market Transactions When you buy, you buy from another person
More informationSHCIL SERVICES LTD. SSL Online Trading - Frequently Asked Questions (FAQ s) - Guidelines.
SHCIL SERVICES LTD. SSL Online Trading - Frequently Asked Questions (FAQ s) - Guidelines. What is an SSL Online Trading account? An SSL Online Trading account allows you to integrate your Trading account
More informationJ. Gaspar: Adapted from Jeff Madura International Financial Management
Chapter3 International Financial Markets J. Gaspar: Adapted from Jeff Madura International Financial Management 3-1 International Financial Markets Can be segmented as follows: 1.The Foreign Exchange Market
More informationTALK PRIME ACADEMY CHAPTER 1 STREET 1. WHAT IS DALAL STREET? 2. WHAT IS WALL STREET? 3. WHAT IS CAPITAL MARKET?
CHAPTER 1 STREET TALK 1. WHAT IS DALAL STREET? Dalal Street (In Hindi dalāl means a broker, or dealer) in downtown Mumbai, where the Bombay Stock Exchange and several related financial institutions are
More informationSecurity Analysis and Portfolio Management Prof. C. S. Mishra Department of VGSOM Indian Institute of Technology, Kharagpur
Security Analysis and Portfolio Management Prof. C. S. Mishra Department of VGSOM Indian Institute of Technology, Kharagpur Module No. # 01 Lecture No. # 05 Organization and Function of Equity and Debt
More informationA New Era of Currency Derivatives Market in India
IOSR Journal of Economics and Finance (IOSR-JEF) e-issn: 2321-5933, p-issn: 2321-5925.Volume 6, Issue 3. Ver. III (May.-Jun. 2015), PP 36-40 www.iosrjournals.org A New Era of Currency Derivatives Market
More informationChapter 3. How Securities are Traded
Chapter 3 How Securities are Traded Primary vs. Secondary Security Sales Primary: When firms need to raise capital, they may choose to sell (or float) new securities. These new issues typically are marketed
More informationHandbook on Basics of Financial Markets
Handbook on Basics of Financial Markets NATIONAL STOCK EXCHANGE OF INDIA LIMITED Basics of Financial Markets What is Investment? The money you earn is partly spent and the rest saved for meeting future
More informationCapital Market - Clearing and Settlement
117 Introduction The transactions in secondary market pass through three distinct phases, viz., trading, clearing and settlement. While the stock exchanges provide the platform for trading, the clearing
More informationDerivatives Usage by Insurer
Derivatives Usage by Insurer and Role of Derivatives es in Recent Economic Meltdown Prabhat Kumar Maiti DD(Actl)/ IRDA 11th GCA, Mumbai 1 Possible uses of derivatives by Insurance companies Efficient portfolio
More informationPOLICY AND PROCEDURE FOR AVAILING SECURITIES TRADING SERVICES THROUGH SAL SECURITIES PRIVATE LIMITED
POLICY AND PROCEDURE FOR AVAILING SECURITIES TRADING SERVICES THROUGH SAL SECURITIES PRIVATE LIMITED The client is desirous to open a trading account with SAL Securities Private Limited (hereinafter referred
More informationComments on three papers by L. C. Gupta
Comments on three papers by L. C. Gupta Susan Thomas IGIDR, Bombay susant@igidr.ac.in http://www.igidr.ac.in/~susant 20 January 2001 Page 1 of 16 1. The Indian badla system Page 2 of 16 Dr. Gupta s arguments
More informationHOW EQUITABLE ARE EQUITY-LINKED INSURANCE PRODUCTS? Abstract
HOW EQUITABLE ARE EQUITY-LINKED INSURANCE PRODUCTS? -Dr. S. Uma & C.S.Kumar Abstract Insurance markets around the world are changing. Policyholders want to enjoy the benefits of equity investment in conjunction
More informationANZ Margin Lending Integrated with E TRADE
ANZ Margin Lending Integrated with E TRADE The ANZ Margin Loan - Integrated with E TRADE What is margin lending? Benefits of gearing The ANZ Margin Loan is an integrated facility that allows you to trade
More informationNATIONAL STOCK EXCHANGE OF INDIA LIMITED
NATIONAL STOCK EXCHANGE OF INDIA LIMITED Retail Debt Market NSE has introduced a trading facility through which retail investors can buy and sell government securities from different locations in the country
More informationABSTRACT NUMBER 007-0001. Arvi Arunachalam Florida International University 305-348-2680
ABSTRACT NUMBER 007-0001 Arvi Arunachalam Florida International University 305-348-2680 Krishnan Dandapani Florida International University 305-348-4241 Sushil K. Gupta Florida International University
More informationBUSINESS STUDIES CLASS-XI
BUSINESS STUDIES CLASS-XI PART A: FOUNDATION OF BUSINESS Unit-1: Nature and Purpose of Business (8 marks/10 periods) Concept and characteristic of business. Business profession and employment distinctive
More informationCRISIL Research Impact note
October 2015 Interest rate on home loans to fall 25-30 bps more: CRISIL Research RBI move to cut risk weight will benefit 70% of home loans, 80% of borrowers CRISIL Research expects interest rate on home
More informationExchange-traded Funds
Mitch Kosev and Thomas Williams* The exchange-traded fund (ETF) industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size. The
More informationINVESTMENT DICTIONARY
INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and
More informationNATIONAL FINANCIAL SERVICES LLC
NATIONAL FINANCIAL SERVICES LLC A Guide to Your Brokerage Account Portions 2008 FMR LLC. All rights reserved. Reprinted by permission. National Financial Services LLC, Member NYSE, SIPC 491662 06-08 1.862411.100
More informationGold is the world s oldest international. Is It Wise to Invest in Gold Now?
BFSI Gold FOCUS Is It Wise to Invest in Gold Now? Gold has been a lot in the news recently. We have had the union finance minister asking investors to shy away from gold investments, the import duty on
More informationTATA PORTFOLIO MANAGEMENT SERVICES
TATA PORTFOLIO MANAGEMENT SERVICES For Private Circulation TATA ASSET MANAGEMENT LTD. THE TATA GROUP One of India s largest business Group Diverse businesses in 7 sectors Operations in over 80 countries
More informationUpdate. SEBI Allows Promoters of Listed Companies to Sell Shares through Stock Exchange Mechanism. -Nivedita Shankar nivedita@vinodkothari.
Vinod Kothari & Company SEBI Allows Promoters of Listed Companies to Sell Shares through Stock Exchange Mechanism -Nivedita Shankar nivedita@vinodkothari.com Check at: www.indiafinancing.com/staffpublications.htm
More information2011 JITENDRARKV STOCK ADVISERY ONLINE CENTURE
2011 JITENDRARKV STOCK ADVISERY ONLINE CENTURE BY- Er. JITENDRA KUMAR VERMA E-mail-id- jitendra.smt@gmail.com Log on to- www.jitendrarkv.webs.com Take profits and do multiple trades The successful strategy
More information1 About BSE. 2 Genesis of the StAR MF platform. 3 Benefits for the stakeholders. 4 StAR MF platform Features. 5 Eligibility for Participation
IInvestiing iin mutuall ffunds has never been siimpller.. A Quick Reference Guide for Mutual Fund Intermediaries (MFIs) INDEX Sr. No. Details 1 About BSE 2 Genesis of the StAR MF platform 3 Benefits for
More informationUnderstanding Margins
Understanding Margins Frequently asked questions on margins as applicable for transactions on Cash and Derivatives segments of NSE and BSE Jointly published by National Stock Exchange of India Limited
More informationA New Episode in the Stock Exchange Mergers Saga: Intercontinental Exchange (ICE)/New York Stock Exchange (NYSE)
Competition Policy International A New Episode in the Stock Exchange Mergers Saga: Intercontinental Exchange (ICE)/New York Stock Exchange (NYSE) Professor Ioannis Kokkoris (Center for Commercial Law and
More informationFrequently Asked Question Mutual Fund Service System (MFSS) for Investors
Frequently Asked Question Mutual Fund Service System (MFSS) for Investors 1. What is MFSS? Mutual Fund Service System (MFSS) is an online order collection system provided by NSE to its eligible members
More informationAct, (ADA) this publication is available in alternative. In compliance with the Americans with Disabilities. formats. Call (503) 378-4387 (V/TDD).
In compliance with the Americans with Disabilities Act, (ADA) this publication is available in alternative formats. Call (503) 378-4387 (V/TDD). 440-4007 (11/00/COM) If you re thinking about investing
More informationMargin Account Agreement
IMPORTANT TO READ This includes and incorporates by reference the Day-Trading Risk Disclosure Statement and the Truth-in-Lending Statement attached hereto (together, the Agreement ). Acknowledgments and
More informationMargin investing. A guide for Vanguard Brokerage clients
Margin investing A guide for Vanguard Brokerage clients Please read this brochure carefully before you apply for a margin account. This complex, high-risk strategy isn t appropriate for all investors.
More informationTrading of Government Securities on the Stock Exchanges
Trading of Government Securities on the Stock Echanges Draft Scheme for comments [Objective With a view to encouraging wider participation of all classes of investors, including retail, across the country
More informationHow Securities Are Traded. Chapter 3
How Securities Are Traded Chapter 3 Primary vs. Secondary Security Sales Primary new issue issuer receives the proceeds from the sale first-time issue: IPO = issuer sells stock for the first time seasoned
More informationACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS
ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS AMEX: The acronym stands for American Stock Exchange, formerly an independent market but now part of the New York Stock Exchange; the AMEX s
More information1 Regional Bank Regional banks specialize in consumer and commercial products within one region of a country, such as a state or within a group of states. A regional bank is smaller than a bank that operates
More informationMax Life Platinum Wealth Plan A Non Participating Unit Linked Insurance Plan UIN: 104L090V01
Max Life Platinum Wealth Plan A Non Participating Unit Linked Insurance Plan UIN: 104L090V01 LIFE INSURANCE COVERAGE IS AVAILABLE IN THIS PRODUCT. IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT
More informationFUND MANAGER CODE OF CONDUCT
FUND MANAGER CODE OF CONDUCT First Edition pursuant to the Securities and Futures Ordinance (Cap. 571) April 2003 Securities and Futures Commission Hong Kong TABLE OF CONTENTS Page INTRODUCTION 1 I. ORGANISATION
More informationUnderstanding Margins. Frequently asked questions on margins as applicable for transactions on Cash and Derivatives segments of NSE and BSE
Understanding Margins Frequently asked questions on margins as applicable for transactions on Cash and Derivatives segments of NSE and BSE Jointly published by National Stock Exchange of India Limited
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the
More informationPUBLIC AND PRIVATE SECTOR MUTUAL FUND IN INDIA
Tactful Management Research Journal Vol. 2, Issue. 3, Dec 2013 ISSN :2319-7943 ORIGINAL ARTICLE Impact Factor : 0.119 (GIF) PUBLIC AND PRIVATE SECTOR MUTUAL FUND IN INDIA S.PALANI AND P. CHILAR MOHAMED
More informationFrequently Asked Questions (FAQs) on HDFC RGESS- Series 2
Frequently Asked Questions (FAQs) on HDFC RGESS- Series 2 1. What is Rajiv Gandhi Equity Savings Scheme (RGESS)? With an objective to encourage flow of savings and to improve the depth of the domestic
More informationWhen firms need to raise capital, they may issue securities to the public by investment bankers.
CHAPTER 3. HOW SECURITIES ARE TRADED When firms need to raise capital, they may issue securities to the public by investment bankers. Primary market is a market for new securities. Secondary market is
More informationTRADING PRACTICES IN EQUITY MARKET AMONG RETAIL INVESTORS WITH SPECIFIC REFERENCE TO CHENNAI CITY
EPRA International Journal of Economic and Business Review Inno Space (SJIF) Impact Factor : 4.618(Morocco) e-issn : 2347-9671, p- ISSN : 2349-0187 Vol - 3, Issue- 7, July 2015 ISI Impact Factor : 1.259
More informationFrom The Editor, s Desk
September 2015 From The Editor, s Desk Dear Reader, Capital market in any country plays a pivotal role in the growth of economy and meeting country s socio economic goals. They are an important constituent
More informationXetra. The market. Xetra: Europe s largest trading platform for ETFs. ETF. One transaction is all you need.
Xetra. The market. Xetra: Europe s largest trading platform for ETFs ETF. One transaction is all you need. Deutsche Börse Group is the leading global service provider to the securities industry. Its cutting-edge
More informationCommerce. The Descriptive Study on Stock Broking Office Service in Madurai ABSTRACT
The Descriptive Study on Stock Broking Office Service in Madurai Commerce KEYWORDS : stock broker, SEBI Investigation, stock exchange, client, trading, stock market, investors. M. Malathi Research Scholar,
More informationI. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)
University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important
More informationBARUCH COLLEGE DEPARTMENT OF ECONOMICS & FINANCE Professor Chris Droussiotis LECTURE 2. Chapter 3 SECURITIES MARKETS
LECTURE 2 Chapter 3 SECURITIES MARKETS IPO Required Docs: Amendment to the certificate of incorporation Corporate Governance (Private are far less formal responsibility) Recruit Independent Board Members
More informationWE ASSURE OUR BEST SERVICES TO OUR ALL CUSTOMERS
We Make Investment Easier... CELEBRATING YEARS 1992-2013 For us, "Growth Means Wealth Creation " SOUTH GUJARAT SHARES & SHAREBROKERS LTD. YVCBPL Since 1994 YACOOBALI VENTURE COMMODITY BROKING PVT. LTD.
More informationFAQ ON EQUITY DERIVATIVES
FAQ ON EQUITY DERIVATIVES CONTENT 1. Trading A) How to open a trading account for commencing trading in the futures and options? B) What are the different forms / documents which are required to be submitted
More informationCHAPTER 13 COMPLIANCE
CHAPTER 13 COMPLIANCE By a Trading Member / Clearing Member 13.1 Annual Accounts and Audit 13.1.1 Every trading member / clearing member shall prepare annual accounts for each financial year ending on
More informationAPPENDIX - I VOLATILITY IN STOCK PRICES AND ITS IMPLICATIONS FOR INVESTMENT DECISIONS OF INDIVIDUAL PLAYERS. (Doctoral Research Periyar University)
APPENDIX - I Code No. VOLATILITY IN STOCK PRICES AND ITS IMPLICATIONS FOR INVESTMENT DECISIONS OF INDIVIDUAL PLAYERS (Doctoral Research Periyar University) I. Identification: QUESTIONNAIRE 1.1. Name* :
More informationNATIONAL STOCK EXCHANGE OF INDIA LIMITED
NATIONAL STOCK EXCHANGE OF INDIA LIMITED Capital Market FAQ on Corporate Bond Date : September 29, 2011 1. What are securities? Securities are financial instruments that represent a creditor relationship
More informationPOLICIES & PROCEDURES
POLICIES & PROCEDURES 1. Refusal of order for penny / illiquid Stock The stock broker may from time to time limit (quantify/value)/ refuse order in one or more securities due to various reasons including
More informationInvestor Guide ALL YOU NEED TO KNOW. (Vol: II)
Investor Guide ALL YOU NEED TO KNOW (Vol: II) TABLE OF CONTENTS 1. INTRODUCTION 2. IMPORTANT THINGS TO KNOW ABOUT EQUITIES 03 03 3. 3.1 3.2 3.3 3.4 HOW TO TRADE? Introducing Stockbrokers The Mechanics
More informationTHE STOCK MARKET GAME GLOSSARY
THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The
More informationHow Wall Street Works Nightly Business Report
Notes from the PBS video How Wall Street Works Nightly Business Report The New York Stock Exchange located on Wall Street in New York City, is traders can buy and sell stocks and bonds. Two major types
More informationQ. Can you please tell me what is Dematerialization of shares and what are its benefits?
FAQ's Demat (Dematerialisation) of Shares KINDLY NOTE THAT EQUITY SHARES OF ANSAL BUILDWELL LTD. ARE UNDER COMPULSORY DEMAT CATEGORY AND HENCE THE SHAREHOLDERS HOLDING SHARES IN PHYSICAL FORM MUST GET
More informationNote on New Products in F&O Segment. 2. Options Contracts with Longer Life/Tenure. 6. Exchange-traded Currency (Foreign Exchange) F&O Contracts
Note on New Products in F&O Segment Contents 1. Mini Contracts in Equity Indices 2. Options Contracts with Longer Life/Tenure 3. Volatility Index and F&O Contracts 4. Options on Futures 5. Bond Index and
More informationContract Specifications of E-GOLD (Demat Gold Units) Mondays through Fridays (except Exchange specified holidays)
Contract Specifications of E-GOLD (Demat Gold Units) Annexure 1 Commodity Details Commodity Contract Symbol E-GOLD (Demat Gold units) E-GOLD Daily contract Daily contract for trading in Demat E-GOLD units
More informationLecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu
Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 2: An Overview of the Financial
More informationGetting Started in Stock Market
Getting Started in Stock Market Getting Started in Stock Market Introduction to Stock Market Primary & Secondary Market Demat and Trading Account Why Trade in Stock Market Investment and Types of Investors
More informationInvestment in Gold Exchange Traded Funds (Gold ETF): A Safe and Novel Approach to Investment in Gold
Investment in Gold Exchange Traded Funds (Gold ETF): A Safe and Novel Approach to Investment in Gold Dr. Joshy Andrews Assistant Professor, St.Aloysius College Edathua, Alapuzha Mail: andrewsjoshy@gmail.com
More informationAdvantages and disadvantages of investing in the Stock Market
Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.
More informationBLISS TO INVESTORS EXTENDED TRADING HOURS
BLISS TO INVESTORS EXTENDED TRADING HOURS By Ms. Chandni Gerelani Assistant Professor Alamuri Ratnamala Institute of Engineering & Technology, Shahapur. chandnigerelani7@gmail.com ABSTRACT This paper aims
More informationGlossary of commonly used Stock Market terminologies
Glossary of commonly used Stock Market terminologies Arbitrage The business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling
More information2011 - The Forex Industry Comes of Age
Your Forex Industry Source. october 2011 1 Your Forex Industry Source. 2011 and Beyond: The Forex Industry Comes of Age october 2011 2 2011 and Beyond: The Forex Industry Comes of Age We are pleased to
More informationfor Analysing Listed Private Equity Companies
8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.
More informationJoindre Capital Online Trading presents J Trade
NRI Faq Joindre Capital Online Trading presents J Trade Who is a NRI? An Indian is said to as Non Resident Indian (NRI) outside India. For Purpose of carrying out Employment/Business or any vocation. Under
More informationA guide to CFDs. Contracts for difference. For more information please contact us on 0117 988 9915 or visit our website www.hlmarkets.co.
A guide to CFDs Contracts for difference For more information please contact us on 0117 988 9915 or visit our website www.hlmarkets.co.uk One College Square South, Anchor Road, Bristol, BS1 5HL www.hl.co.uk
More informationMESSAGE FOR INVESTORS relating to ISSUE OF SECURITIES INVESTING IN DERIVATIVES COLLECTIVE INVESTMENT SCHEME (CIS) DEALING WITH BROKERS & SUB - BROKERS
MESSAGE FOR INVESTORS relating to ISSUE OF SECURITIES INVESTING IN DERIVATIVES COLLECTIVE INVESTMENT SCHEME (CIS) DEALING WITH BROKERS & SUB - BROKERS INVESTING IN MUTUAL FUNDS BUYBACK OF SECURITIES OPEN
More informationA STUDY ON MUTUAL FUNDS WITH DUE REFERENCE TO SBI MUTUAL FUNDS
A STUDY ON MUTUAL FUNDS WITH DUE REFERENCE TO SBI MUTUAL FUNDS MR. BADRIVISHAL Asst-Professor, Signodia Arts, Commerce and P.G. center, Charkaman, Hyderabad Abstract The mutual fund industry is a lot like
More informationNATIONAL FINANCIAL SERVICES LLC
NATIONAL FINANCIAL SERVICES LLC A GUIDE TO YOUR BROKERAGE ACCOUNT As part of our effort to provide you with quality service, our broker/dealer has an agreement with National Financial Services LLC in which
More informationIndia s Online Insurance Market Ready to Open Up
India s Online Insurance Market Ready to Open Up Harnessing the Internet and Consumer Choice By Anushri Bansal, Rajesh Sabhlok and Vivek Jalan India is experiencing the growth of the Internet at a time
More informationA step by step guide to trading in Future & Options
A step by step guide to trading in Future & Options Experience fast, easy, transparent and hassle-free trading with ICICIdirect.com! No paperwork No regulatory hassles No delays in execution of orders
More informationMarks : Five marks one question. Maximum 13 + 5 = 18.
Marks : One mark one question. Two marks one question. Ten marks one question. Five marks one question. Maximum 13 + 5 = 18. TOPICS STUDIED: 1. Meaning and Definition of Capital Market. 2. Need and importance
More information